Baja Mining's (TSX: V.BAJ, Stock Forum) Boleo project, located in Baja Califonia Sur, has been limping along since April 2012 when the company announced projected cost overruns in excess of $200 million to bring the project to production. The company then struggled over the following two years as it ran through a financing and logistical gauntlet which saw lawsuits, a TSX de-listing, the resignation of its CEO and a share price drop of ~110%.

Production expectations at Boleo were dampened once again as the company announced that it had been advised by Minera y Metalúrgica del Boleo, S.A. P.I. de C.V. ("MMB") and Korea Resources Corporation ("KORES") that KORES had provided a US$20 million bridge loan to MMB to finance the continuing construction at Boleo Project.

The aforementioned loan was intended to give MMB some breathing room as it searches out additional external financing of up to US$200 million necessary for the completion of construction and working capital until production at the project reaches a normalized level.

According to the news release, the bridge loan is repayable in six months and has an interest rate of 10% per annum.

MMB has also let Baja know that there may be further delays in the completion of construction and production of first copper and as a result, MMB expects production of first copper before the end of Q4 2014.

The release went on to state that the company would advise shareholders on construction completion and start-up schedule at Boleo as it receives any specific target dates from MMB or KORES.